Business & Finance
Mexico Central Bank Adds Bond-Buying Tool to Support Liquidity
Key Points
Central Banks Mexico Central Bank Adds Bond-Buying Tool to Support Liquidity Mexico’s central bank published regulations allowing it to buy some local government securities to boost money-market liquidity if needed, a possible preemptive move to help the regulator step in if investors are forced to sell Mexican assets. Banxico, as the bank is known, said on Monday that beginning in the third quarter it may buy zero-coupon Cetes and floating-rate Bondes F in the secondary market when...
Central Banks
Mexico Central Bank Adds Bond-Buying Tool to Support Liquidity
Mexico’s central bank published regulations allowing it to buy some local government securities to boost money-market liquidity if needed, a possible preemptive move to help the regulator step in if investors are forced to sell Mexican assets.
Banxico, as the bank is known, said on Monday that beginning in the third quarter it may buy zero-coupon Cetes and floating-rate Bondes F in the secondary market when liquidity conditions require it. Any purchases would depend on liquidity forecasts and market conditions, the bank said, adding that it will disclose the maximum potential amount for each quarter in its government securities auction program.